The yield on the 10-year US Treasury bond fell after data showed inflation picked up in March, though less than many market participants had expected.
Although gold is considered a hedge against inflation, rising prices can lead central banks to raise interest rates, which drives up bond yields and increases the opportunity cost of holding bullion.
Federal Reserve Governor Lael Brainard said the US central bank could start reducing its balance sheet in June, which, along with a series of interest rate hikes, will help reduce inflationwhich is at the highest level in the last 40 years.
In other precious metals, palladium fell 3.7% to $2,342.42 an ounce on profit-taking, having hit its highest since March 24 at $2,550.58 on Monday, after the suspension of the commercialization of the metal coming from its main producer, Russia, in London.
Meanwhile, silver rose 1.3% to $25.40 and platinum fell 1.1% to $966.41.
Source: Ambito
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